People will continue to suffer in silence
The deficit would be manageable in normal circumstances -- as in the Eighties, the burden of the recession would be passed to low- and middle-income groups, and health and education would be slashed. That's still the establishment's preferred option, but the depth of the banking collapse has changed the game.
Politicians, senior civil servants and their advisers in finance and business decided to try to save the banks they had come to know and love. They've consequently drained the Pension Reserve Fund and squandered tens of billions we don't have.
This is complicated by the fact that much of the Irish banks' gambling debts are owed to German and French banks, who were party to the gambling of Seanie FitzPatrick and his mates.